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John Nesbett - Investor Relations Contact J. Richard Ellis
Lippert/Heilshorn & Associates President & CEO
(212) 838-3777, ext. 121 (408) 934-7000
(E-MAIL: JGN@LHAI.COM)
DISC, INC. ANNOUNCES PRIVATE PLACEMENT SELLING
$1,400,000 OF PREFERRED STOCK
MILPITAS, CALIFORNIA, FEBRUARY 25, 1998 - DISC, INC. (NASDAQ Symbols:
DCSR, DCSRW) today reported that the Company completed on February 20, 1998, the
sale of $1,400,000 of preferred stock to the Company's largest investor, MK
Global Ventures. This additional equity enabled the Company to meet the
continued listing requirements of the Nasdaq SmallCap Market which became
effective on February 23, 1998.
"In addition to providing continued liquidity for our shareholders, this
capital infusion provides DISC additional working capital to grow our business"
commented Richard Ellis, President and CEO of DISC, Inc. "This financing
provides additional funding for our new product programs as well as expansion of
our vertical market sales channels. We are pleased with the continued level of
support from MK Global Ventures and the confidence that they place in our
ability to capitalize on the market opportunities."
DISC is the industry leader in high capacity automated 5.25-inch and CD
optical storage libraries. DISC markets products ranging in capacity from 150
to over 1,450 cartridges in several models, many of which are field upgradeable
to higher capacities. All models share a common architecture and modular design
oriented toward high performance and reliability. DISC libraries are sold with
system solutions by OEMs, System Integrators, VARs and Distributors in North
and South America, Europe and the Far East.
"Safe Harbor" Statement under the private Securities Litigation Reform
Act of 1995: The statements which are not historical facts contained in this
release are forward looking statements that involve risks and uncertainties,
including, but not limited to, product demand and market acceptance risks, the
effect of economic conditions, the impact of competitive products and pricing,
product development, commercialization and technological difficulties, capacity
and supply constraints or difficulties, the results of financing efforts, actual
purchases under agreements, the effect of the Company's accounting policies, and
other risks detailed in the Company's Securities and Exchange Commission
filings.
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DISC, INC.
PROFORMA BALANCE SHEET
(unaudited)
2/98 EQUITY DEC. 31, 1997
ASSETS DEC. 31, 1997 INVESTMENT PROFORMA
-------------- -------------- --------------
Cash $ 436,000 $ 1,400,000 $ 1,836,000
Accounts receivable, net allow for doubtful
accounts of $89,000 1,768,000 -- 1,768,000
Inventories 1,465,000 -- 1,465,000
Prepaids and deposits 73,000 -- 73,000
-------------- -------------- --------------
Total current assets 3,742,000 1,400,000 5,142,000
Property and equipment, net 402,000 -- 402,000
-------------- -------------- --------------
$ 4,144,000 1,400,000 5,544,000
============== ============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $ 1,332,000 $ -- $ 1,332,000
Borrowings under credit line 1,338,000 -- 1,338,000
Other accrued liabilities 280,000 -- 280,000
Accrued warranty 79,000 -- 79,000
Current portion of capitalized lease obligations 24,000 -- 24,000
-------------- -------------- --------------
Total current liabilities 3,053,000 -- 3,053,000
Leases payable 20,000 -- 20,000
Shareholder' equity:
Convertible Preferred Stock; no par value,
5,000,000 shares authorized; 3,395,304 12,742,000 1,400,000 14,142,000
shares issued and outstanding
Common Stock; no par value, 20,000,000
shares authorized; 3,334,323
shares issued and outstanding 11,053,000 -- 11,053,000
Accumulated deficit (22,724,000) -- (22,724,000)
-------------- -------------- --------------
Total shareholders' equity 1,071,000 1,400,000 2,471,000
-------------- -------------- --------------
$ 4,144,000 $ 1,400,000 $ 5,544,000
============== ============== ==============